Tanzania: Total Market Capitalisation Down As Major Indices Decline During the Week

THE Banking, Investment and Finance index fell by 2.23 per cent at the bourse while the underlying securities contributed about 82.11 per cent of total weekly turnover after CRDB contributed 56.14 per cent of the total weekly turnover, NMB contributed 18.54 per cent of the total weekly turnover and DSE contributed about 7.43 per cent of the total weekly turnover.

During the week DSEI dropped by 3.27 per cent as the result of the decrease in share price of CRDB, DSE, EABL, KA and KCB. TSI also declined by 0.43 per cent while other indices remained flat during the week.

In the coming week, we anticipate the performance to be maintained by the active local counters in terms of volume, turnover and price movements in the bourse.

On the industrial and allied segment, TPCC is anticipated to remain active during the week while in the banking, Finance and Investment index DSE and CRDB will maintain their activeness in the market with the decline in their share prices. Midweek we expect a Treasury bill auction held by the central bank.

The high appetite thrived during the last treasury bill auction held on 4th March 2020 especially in 364-days, with a high rate of oversubscription could possibly witness bids flooding for the auction and a decline in the WAY from 5.47 per cent of the previous auction.

Government securities yield curve may continue to remain normal and weighted average yields are expected to decline due to higher appetite of the government treasuries.

In the interbank money market, notwithstanding the increased in WAR during the week we anticipate that WAR to be within a range of 4.00 per cent to 4.21 per cent with slight volatility in the high and low rate.

The Bourse

Total market capitalization decreased by 3.27 per cent to 17.06tri/-from 16.51tri/-while domestic market capitalisation decreased by 0.43 per cent to 9.18tri/-from 9.22tri/-.

DSEI, TSI and B&F indices moved southwards by 3.27 per cent, 0.43 per cent and 2.23 per cent to 1,988.62 points, 3,498.94 points and 2,199.59 points respectively on the last day of the week.

This drop was contributed by share price decline of cross listed counters as follows: KA by 20 per cent to 40/-from 50/-, EABL dropped by 4.44 per cent to 4,300/- from 4,500/- and KCB which dropped by 8.93 per cent to 1,020/-from 1,120/-.

For local listed companies, CRDB declined by 8.82 per cent to 155/-from 170/-and DSE declined by 1.11 per cent to 880/-from 890/-.

During the week the market activeness receded with a decrease in total volume of shares traded to 296,016 from 87 deals all the way from 397,377 shares from 107 deals in the previous week.

Total turnover declined by 58.75 per cent to 75.17m/-from 182.21m/-in the previous week.

During the week, CRDB dominated the market by trading shares worth 42.19m/-which is 56.14 per cent of the total weekly turnover.

NMB traded shares worth 13.93m/-, TPCC followed by trading shares worth 10.11m/-, DSE traded share worth 5.58m/-, NICOL traded shares worth 1.18m/-, TCC traded shares worth 1.70m/-, TBL traded shares worth 0.28m/- while, VODA and TOL joined the laggards by trading shares worth 0.12m/-and 0.048m/-, respectively.

Interbank Market

The weighted average rate (WAR) for the interbank market climbed to close at 4.55 per cent from 3.86 per cent previous week.

Total volume traded during the week increased by 36.35 per cent to 117.4bn/-from 86.1bn/- recorded in the previous week.

The highest and lowest rate was 5.00 per cent and 4.00 per cent from 5.50 per cent and 3.50 per cent, respectively from the preceding week.

Debt Market

During the week the Government sought to raise 137.28bn/- through 2 years-treasury bond auction.

The government pocketed 137.28bn/-from 23 successful bids amongst 154 bids worth 418.33bn/-tendered, and hence an oversubscription level of 281.05bn/- .

Number of bids received was 154 with the highest and lowest bid being 99.67/100 and 90.00/100 respectively.

Minimum successful price being 98.20/100, weighted average price of successful bids being 99.03/100, weighted average yield to maturity being 8.34 per cent.

On the secondary market, the government transacted 111.84bn/-with face value of 114.69bn/-from last week's transaction value and face value of 29.16bn/-and 29.56bn/-, respectively.

The corporate bond segment remained dry as the previous week.

Interbank Foreign Exchange Market

During the week, total volume traded was USD 12.5 million at an average rate of TZS 2,300.59 from USD 24.0 million at an average rate of TZS/USD 2,300.69.

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